Research >> Economics
Empire State Manufacturing Survey Conditions continued to expand at slower pace in July 2021
|
Business activity grew at a record-setting pace in New York State, according to firms responding to the July 2021 Empire State Manufacturing Survey. The headline general business conditions index shot up twenty-six points to 43.0. New orders and shipments increased robustly. Delivery times continued to lengthen substantially, and inventories expanded. Employment grew strongly, and the average workweek increased. Input prices continued to increase sharply, and selling prices rose at the fastest pace on record. Looking ahead, firms remained optimistic that conditions would improve over the next six months, with the index for future employment reaching another record high.
Activity Surges
Manufacturing activity surged in New York State, according to the July survey. The general business conditions index rose twenty-six points to 43.0, a record high. Half of respondents reported that conditions had improved over the month, while just seven percent reported that conditions had worsened. The new orders index climbed seventeen points to 33.2, and the shipments index increased thirty points to 43.8, pointing to rapid growth in both orders and shipments. Unfilled orders rose. The delivery times index fell ten points from last month’s record high, though at 20.2, it indicated that significantly longer delivery times are an ongoing issue. Inventories expanded considerably.
Selling Prices Increase at Record-Setting Pace
The index for number of employees increased eight points to 20.6, and the average workweek index held steady at 14.0, pointing to ongoing gains in employment and hours worked. Both price indexes were at or near record highs, indicating that price increases remain significant. The prices paid index edged down just slightly to 76.8, while the prices received index climbed six points to 39.4, a new record.
Firms Remain Optimistic
The index for future business conditions fell eight points, but at 39.5 indicated ongoing optimism about future conditions. The indexes for future new orders and shipments fell to similar levels. The index for future employment edged up to a new record high of 43.9, with half of firms reporting that they expect to increase employment over the next six months. The indexes for future prices paid and future prices received remained elevated. The capital expenditures index rose to 26.3, and the technology spending index held steady at 14.1.
Posted: July 15, 2021 Thursday 08:30 AM